Virgin Australia owes $6.8b to more than 12,000 creditors, documents reveal
Virgin Australia owed more than $6.8b to more than 12,000 creditors, including employees, banks, aircraft financiers and landlords, when its board decided to appoint administrators last Monday. Documents filed with the federal court by the administrators, partners at accounting firm Deloitte, show they are also uncertain as to whether to continue leasing some of the grounded airline’s 144-strong fleet of planes. On Friday morning, federal court judge John Middleton gave the administrators permission to hold a meeting of creditors next Thursday by videolink. He also allowed the administrators an extra month to decide how to deal with its 94 different aircraft leases before they become personally liable for almost $2b owed under the contracts. Administrator Vaughan Strawbridge has previously said Deloitte hopes to quickly sell Virgin Australia in one piece. An expression of interest campaign lasting three weeks started on Tuesday. Virgin CE Paul Scurrah, who remains in his job during the administration, said the board’s decision to place the company in administration came after the federal government knocked back a final plea for $200m in assistance – far less than a loan of $1.4b the airline initially requested.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-04-27/unaligned/virgin-australia-owes-6-8b-to-more-than-12-000-creditors-documents-reveal
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Virgin Australia owes $6.8b to more than 12,000 creditors, documents reveal
Virgin Australia owed more than $6.8b to more than 12,000 creditors, including employees, banks, aircraft financiers and landlords, when its board decided to appoint administrators last Monday. Documents filed with the federal court by the administrators, partners at accounting firm Deloitte, show they are also uncertain as to whether to continue leasing some of the grounded airline’s 144-strong fleet of planes. On Friday morning, federal court judge John Middleton gave the administrators permission to hold a meeting of creditors next Thursday by videolink. He also allowed the administrators an extra month to decide how to deal with its 94 different aircraft leases before they become personally liable for almost $2b owed under the contracts. Administrator Vaughan Strawbridge has previously said Deloitte hopes to quickly sell Virgin Australia in one piece. An expression of interest campaign lasting three weeks started on Tuesday. Virgin CE Paul Scurrah, who remains in his job during the administration, said the board’s decision to place the company in administration came after the federal government knocked back a final plea for $200m in assistance – far less than a loan of $1.4b the airline initially requested.<br/>
